Neil Barofsky, the former Special Inspector General for TARP and author of "Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street" provides an in-depth account of his experience behind the scenes, as he tried to
negotiate what he initially believed was a program designed to save main street but that he later discovered was really created with the full intention of bailing out Wallstreet.
http://youtu.be/xUPQyyzVUfg Part 2
Barack Obama on TARP

President Obama has remained a strong supporter of the TARP program throughout his time in the Senate and in the White House. His actions as President have drastically changed the program, taking it from its original form as a mechanism to purchase specific kinds of stocks and warrants and using the program funds to spur lending among small businesses, create programs to assist homeowners in refinancing their homes, rescue GM, and create programs to directly provide funds to states hardest hit by the housing crisis.

What is TARP

The Troubled Asset Relief Program (TARP) was created in October of 2008 to address the fiscal crisis by purchasing warrants and stocks from financial institutions so that those items no longer burdened the banks. The legislation outlines what items can be purchased, and defines the institutions from what institutions those items can be purchased. President Bush violated those rules prior to leaving office when he loaned money to General Motors and Chrysler. President Obama further violated those rules when he purchased stock in GM and then used the influence from those purchases to direct changes at GM.
Record as Senator
In addition to voting for the TARP program, Senator Obama spoke on the Senate floor in support of the program. In that speech, he urged his fellow Senators to "step up to the plate" and do the right thing in passing the legislation. He noted that a similar program had failed in the House and triggered a fall in the stock market. In supporting the program, he also urged it to have a program for home owners and an oversight board for the funds.
Second Half of TARP
After Senator Obama won the 2008 Presidential election, he asked President Bush to request the second half of the TARP funds to be allocated to TARP. In making the request, he stated that the economy was still too frail and that it would be irresponsible to enter office without having all the tools he needed to address the problem.

Request for Second Half of TARP

On January 12, 2009 President Bush stated that if President Obama desired the second installment of TARP funds, then he would move forward with the request. President-elect Obama immediately asked President Bush to request the funds.
"(it would be) irresponsible ... to enter into the administration without any potential ammunition should there be some sort of emergency or weakening of the financial system.
It is clear that the financial system, although improved from where it was in September, is still frail." http://www.thepoliticalguide.com/Profiles/President/US/Barack_Obama/Views/TARP/

plus-circle Add Review

comment

Reviews